Status of
Ref. Observation Recommendation Implementation/Results of
Validation
year, contrary to Paragraph Financial Position date
(Par.) 80 of the IPSAS No. 1, and reclassify it under the
thus, information about current portion of the
financial position, specifically Financial Liabilities,
the timing of cash flows for pursuant to Par. 80 of
payment of loans, is withheld IPSAS No. 1.
from the stakeholders and
constituents of the Municipal
Government.
AAR Disclosures in the Notes to 5. The Municipal Implemented
2023, Financial Statements on the Accountant shall revise
AO no. “Loans Payable – Domestic” the Notes to the Financial The Notes to the Financial
3, page account balance of Statements to include the Statements had already
27 ₱70,182,085.50 is incomplete, principal amount, interest included the necessary
a departure from the fair rate, maturity date, and information required under
presentation requirement under interest expense of the IPSAS.
the IPSAS, thus affecting the Loans Payable –
usefulness of the financial Domestic account, to
information on loans to its properly inform the users
users, especially its of the financial
constituents. statements, the financial
performance of the
Municipal Government,
particularly in financial
management.
AAR The recently designated 6. The Acting Municipal Implemented
2023, Accountable Officers (AO) did Treasurer, henceforth:
AO no. not follow the requirement The cashbook from the
4, page stated in Section 6.1 of COA Require the outgoing AO former AO was submitted to
28 Circular No. 97-002, which to submit their cashbook the Acting Municipal
mandates the use of a new to the Municipal Treasurer and Municipal
cashbook upon assumption. As Treasurer and Municipal Accountant.
a result, the current AO's Accountant for
accountability was not verification and recording
properly segregated and purposes;
validated from the previous 7. Instruct the newly Implemented
AO, leading to doubts about appointed or designated
the accuracy of the recorded AO to use a new A new cashbook was
cashbook balances. cashbook in accordance provided to the newly
with COA Circular No. designated AO.
97-002; and
8. Brief the newly appointed Implemented
or designated AOs on the
proper recording of The Acting Municipal
transactions and other Treasurer ensured that the
matters relating to their newly designated AO was
role as a disbursing properly oriented in
officer. recording transactions.
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